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A compony ourresty has zero debt (ie, ud =0 ). It is a z+eo grawh compry, and addisional firm data ore shoun belows Now the

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A compony ourresty has zero debt (ie, ud =0 ). It is a z+eo grawh compry, and addisional firm data ore shoun belows Now the company is consideng usig sone deat maing to the new capitar strature indicated below. the money raised would be used to prese repurchate strock at the current price. It is estimaled that ine inorease in nsk resulting from the additional leverage ward couse the required rate of return on equity to rise sincurat, as indicaled below. If this plon wer carried out, by how men wald the WACC change, i. e, what is WACCOId - wACGuew? Do not rund your intermediate calulations hid 50 ars cost of equity, is. 10. 75% w c 50% now cor of equity = rs 11.0% 40%

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